Approximately 40,000 workers from 16 closed factories of the Beximco Group formed a 10-kilometre long human chain this week along a major highway in Bangladesh in a protest demanding the resumption of letters of credit (L/Cs) and the reopening of factories.

Beximco cites a lack of export orders and difficulties in securing L/Cs for importing raw materials as reasons why the group has shut down its apparel and textile factories.

But the owners of Bangladesh's largest private-sector conglomerate had close connections with ousted Prime Minister Sheikh Hasina, and since August 2024, when she was ejected from power amidst widespread allegations of corruption and chose to go into exile in India, Beximco has faced multiple difficulties.

Political connections

Beximco Group was founded by two brothers: Ahmed Sohail Fasihur Rahman, who serves as the chairman, and Salman Fazlur Rahman, the vice-Chairman.

Salman Rahman has been notably involved in Bangladesh's political landscape. He served as the private sector development adviser to Sheikh Hasina, providing counsel on private industry and investment matters.

Allegations

During her tenure, there were allegations that Rahman leveraged his political influence to benefit Beximco Group. Critics claimed that he secured favourable terms for the conglomerate, including extensive bank loans, by utilising his governmental connections.

Following Sheikh Hasina's fall, it was revealed that companies associated with Salman owed around US$3.5 billion to various banks, with much of this debt obscured through numerous reschedulings.

Impact on Beximco

Since the ousting of Sheikh Hasina, the conglomerate experienced a lack of orders and banking support, leading to the layoff of approximately 30,000 workers from its apparel factories.

In the aftermath, the government initiated actions against Beximco Group. The high court issued a rule asking why a receiver should not be appointed to manage the conglomerate's assets. Additionally, there were discussions about selling or leasing several of Beximco's units to address financial strains and workers' unrest.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.